O&G risks arise from East Malaysian moves

Dateline 2018-03-27, Borneo Post:

There is a possibility of lower Petronas equity stakes in East Malaysian production sharing contracts (PSCs).

AmInvestment Bank Bhd (AmInvestment Bank) yesterday said that as the aim of these new regulatory regime is to ensure a higher share of the state’s hydrocarbon revenues to be deployed to Sarawak, there was a possibility that the state may assume half of Petronas’ equity share in the production sharing contracts (PSC) in the state, besides novating the federal government’s royalty of five per cent.

“As Sabah may follow suit, these new considerations which will entail another bureaucratic layer of approvals may weigh down Petronas’ final investment decisions in East Malaysia – notwithstanding closely-guarded negotiations currently between these concerned parties,” it forewarned in a report following the Offshore Technology Conference Asia (OTCA) held last week.

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